TMI BlogDemands and RecoveryX X X X Extracts X X X X X X X X Extracts X X X X ..... long with interest before issue of show cause notice under section 73? Ans. A person can make payment voluntarily either before issue of notice or within thirty days of issue of notice and file an intimation of such voluntary payment in form GST DRC-03. In such cases if paid before issue of notice, notice shall not be issued by the proper officer { sec.73 (6) } and if paid after issue of notice but within thirty days, all proceedings in respect of such notice shall be deemed to be concluded. { sec.73 (8) } Q 4. What is the form and manner in which payment of tax/interest/penalty before issue of notice under Section 73 or 74 will be communicated by the taxable person? Ans. In cases falling under Section 73 , the taxable person has the option to discharge tax and interest liability before issuance of notice under Section 73(1) or statement under Section 73(3) . Similarly, in cases falling under Section 74 , the taxable person has the option to discharge tax/interest/penalty equal to 15% of tax liability before issuance of notice under Section 74(1) or statement under Section 74(3) . If he opts to make such payment before issuance of notice, he shall make th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a period five years from the due date of furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or from the date of erroneous refund. Q 8. How will the taxable person respond to the SCN issued under Section 73 or Section 74? Ans. The taxable person shall respond to the notices issued under Section 73 or Section 74 in FORM GST DRC-06 . Q 9. What is the form and manner in which an order determining tax liability will be issued under Section 73 or Section 74? Ans. The order will be a speaking order after following due process of law. A summary of the order issued under section 73(9) or section 74(9) or section 76(3) shall be uploaded electronically in FORM GST DRC-07 , specifying therein the amount of tax, interest and penalty payable by the person chargeable with tax. Q 10. After issuance of order, is it necessary for the proper officer to issue a recovery notice? Ans. No. The order itself will be treated as a recovery notice. Q 11. Is there any time limit for adjudication the cases? Ans: (i) In case of section 73 (cases other than fraud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs against the main person have been concluded under section 73 or section 74, the proceedings against all the persons liable to pay penalty under sections 122 , 125 , 129 and 130 are deemed to be concluded. Explanation 2. For the purposes of this Act, the expression suppression shall mean non-declaration of facts or information which a taxable person is required to declare in the return, statement, report or any other document furnished under this Act or the rules made thereunder, or failure to furnish any information on being asked for, in writing, by the proper officer. Q 15. What is the time limit for initiation of recovery proceedings under CGST Act, 2017? Ans. Any amount payable by a taxable person in pursuance of an order passed under this Act shall be paid by such person within a period of three months from the date of service of such order failing which recovery proceedings shall be initiated. Provided that where the proper officer considers it expedient in the interest of revenue he may, for reasons to be recorded in writing, require the said taxable person to make such payment within such period less than a period of three months as ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y and late fee in relation to CENVAT credit wrongly carried forward, and in relation to arrears of central excise duty, service tax or wrongly availed CENVAT credit thereof under the existing law shall be recovered as interest, penalty and late fee of central tax to be paid through the utilization of the amount available in electronic cash ledger of the registered person. Q 18. What are the modes of recovery of tax available to the proper officer? Ans. The proper officer may recover the dues in following manner: a) Deduction of dues from the amount owned by the tax authorities payable to such person. b) Recovery by way of detaining and selling any goods belonging to such person; c) Recovery from other person, from whom money is due or may become due to such person or who holds or may subsequently hold money for or on account of such person, to pay to the credit of the Central or a State Government; d) Distrain any movable or immovable property belonging to such person, until the amount payable is paid. If the dues not paid within 30days, the said property is to be sold and with the proceeds of such sale the amount payable and cost of sale shall be recove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hable or hazardous nature or where the expenses of keeping them in custody are likely to exceed their value, the proper officer may sell them forthwith. (4) The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be. (5) The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of auction. On payment of the full bid amount, the proper officer shall transfer the possession of the said goods to the successful bidder and issue a certificate in FORM GST DRC-12. (6) Where the defaulter pays the amount under recovery, including any expenses incurred on the process of recovery, before the issue of the notice under sub-rule (2), the proper officer shall cancel the process of auction and release the goods. (7) The proper officer shall cancel the process and proceed for re-auction where no bid is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ? (Rule 147) Ans. (1) The proper officer shall prepare a list of movable and immovable property belonging to the defaulter, estimate their value as per the prevalent market price and issue an order of attachment or distraint and a notice for sale in FORM GST DRC-16 prohibiting any transaction with regard to such movable and immovable property as may be required for the recovery of the amount due: Provided that the attachment of any property in a debt not secured by a negotiable instrument, a share in a corporation, or other movable property not in the possession of the defaulter except for property deposited in, or in the custody of any Court, shall be attached in the manner provided in rule 151 . (2) The proper officer shall send a copy of the order of attachment or distraint to the concerned Revenue Authority or Transport Authority or any such Authority to place encumbrance on the said movable or immovable property, which shall be removed only on the written instructions from the proper officer to that effect. (3) Where the property subject to the attachment or distraint under sub-rule (1) is- (a) an immovable property, the order of attachment or distraint s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. (10) Where, upon investigation, the proper officer is satisfied that, for the reason stated in the claim or objection, such property was not, on the said date, in the possession of the defaulter or of any other person on his behalf or that, being in the possession of the defaulter on the said date, it was in his possession, not on his own account or as his own property, but on account of or in trust for any other person, or partly on his own account and partly on account of some other person, the proper officer shall make an order releasing the property, wholly or to such extent as he thinks fit, from attachment or distraint. (11) Where the proper officer is satisfied that the property was, on the said date, in the possession of the defaulter as his own property and not on account of any other person, or was in the possession of some other person in trust for him, or in the occupancy of a tenant or other person paying rent to him, the proper officer shall reject the claim and proceed with the process of sale through auction. (12) The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed address of the corporation and in the case of other movable property, to the person in possession of the same. (3) A debtor, prohibited under clause (a) of sub-rule (1), may pay the amount of his debt to the proper officer, and such payment shall be deemed as paid to the defaulter. Q 26. In what manner, will attachment of any property in the custody of courts take place? ( Rule 152 ) Ans. Where the property to be attached is in the custody of any court or Public Officer, the proper officer shall send the order of attachment to such court or officer, requesting that such property, and any interest or dividend becoming payable thereon, may be held till the recovery of the amount payable. Q 27. How will proper officer attach an interest in partnership of the defaulter? ( Rule 153 ) Ans. (1) Where the property to be attached consists of an interest of the defaulter, being a partner, in the partnership property, the proper officer may make an order charging the share of such partner in the partnership property and profits with payment of the amount due under the certificate, and may, by the same or subsequent order, appoint a receiver of the share of such partner i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aulter. ( Rule 157 ) Q 32. Whether the payment of tax dues can be made in instalments? Ans. Yes, a person can request for payment of any amount due under the Act, other than the amount due as per the liability self-assessed in any return, in monthly instalments not exceeding twenty-four, subject to payment of interest under section 50 with such limitations and conditions as may be prescribed. However, where there is default in payment of any one instalment on its due date, the whole outstanding balance payable on such date shall become payable and recovered without any further notice. { sec.80 of CGST Act } Q 33. In what manner, will the Commissioner deal with a request for payment of tax and other amounts in instalments? ( Rule 158 ) Ans. (1) On an application filed electronically by a taxable person, in FORM GST DRC- 20 , seeking extension of time for the payment of taxes or any amount due under the Act or for allowing payment of such taxes or amount in instalments in accordance with the provisions of section 80 , the Commissioner shall call for a report from the jurisdictional officer about the financial ability of the taxable person to pay the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner may, after affording an opportunity of being heard to the person filing the objection, release the said property by an order in FORM GST DRC- 23. (6) The Commissioner may, upon being satisfied that the property was, or is no longer liable for attachment, release such property by issuing an order in FORM GST DRC- 23. Q 35. How will notice of tax dues be given to the liquidator in terms of Section 88? Ans. Where the company is under liquidation as specified in section 88 , the Commissioner shall notify the liquidator for the recovery of any amount representing tax, interest, penalty or any other amount due under the Act in Form GST DRC -24. Q 36. How will the order for reduction or enhancement of any demand in terms of Section 84 be given? ( Rule 161 ) Ans. The order for the reduction or enhancement of any demand under section 84 shall be issued in Form GST DRC-25 . Q 37. Can recovery of arrears of a person registered in one State be effected from a distinct person located in another state? Ans. Yes, vide the CGST (Amendment) Act, 2018 , an explanation clause has been inserted in section 79 of the CGST Act, 2017 to the effect that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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